What was the accumulated amortization for software development for Craters & Freighters as of December 31, 2022?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
ation expense for the years ended December 31, 2023 and 2022 totaled $101,989 and $99,763, respectively.
Summary of software development as of December 31:
| As of December 31, | 2023 | 2022 |
|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, as of December 31, 2022, the accumulated amortization for software development was $215,196. This figure represents the total amount of amortization that has been recognized on Craters & Freighters' software development assets up to that date.
Software development costs are amortized over a three-year period using the straight-line method. This means that the cost of the software is evenly expensed over its useful life. The accumulated amortization reflects the cumulative amount of these expenses that have been recorded since the software was put into use.
For a prospective franchisee, understanding the amortization of software development costs is important for assessing the company's financial health and how it manages its assets. It also provides insight into the company's investments in technology and how these investments are depreciated over time. Reviewing these figures in the context of Craters & Freighters' overall financial statements can offer a more complete picture of the company's financial performance and stability.